Is Disney Trying to Buy 2000 Acres of Land in India's Andhra Pradesh to Build There India Disneyland ?

Editing 11/10: Following the articles in the Indian press Disney released this statement: “Disney has no immediate plans to open a theme park in India. We continually look for opportunities to grow our business and while India is an attractive market, we currently have no plans for a theme park here. Disney India continues to build its brands through four core businesses, namely Media Networks (one of the largest TV networks with eight popular channels targeting kids, youth and families), Interactive (one of the leading players in the digital and games segment), Studios (one of the leading film producers and distributors in the country) and Consumer Products (one of the most prominent players in the Merchandising and Licensing industry). Our businesses are dedicated to creatively developing, marketing and distributing the best branded entertainment for Indian consumers across ages”, said a statement from the company."
So, what you will read below was probably only wishful thinking or someone trying to inflate land values by saying a big investor (Disney) is coming to town. So far we can consider that Disney have no theme park plans in India... for now.

Some big news was released today on several newspaper from India: Disney is supposedly trying to buy 2000 acres of land near Visakhapatnam, a port city in Andhra Pradesh, to build there the first Disney resort in India. What is the truth in all this, that is what we'll try to find but first here are some excerpts from different articles.

From The Hindu online article titled "India’s first Disneyland in AP likely": 

"A.P. seeks details on land and other requirements from a private investor interested in setting up Disneyland. Investors now pay five per cent of land’s market value per acre as lease rental every year. On Visakhapatnam outskirts the average rental amounts to Rs. 20 lakh per acre.

If the Andhra Pradesh government has its way, the State could become home to India’s first Disneyland.The State government has sought information on land and other requirements from a private investor who evinced interest in setting up Disneyland on the lines of the one in Paris. With talks still in initial stages, details are yet to emerge but the government is said to be actively pursuing the proposal.

A similar proposal was floated to the government of undivided Andhra Pradesh in the past without any development. If past land demands are any indication, as much as 2,000 acres may be sought. Disneyland is among the several novel initiatives AP government is planning, to tap its tourism potential. Others include water sports, theme parks, cruise tourism, spiritual tourism and beach tourism among others. Development of convention centres akin to Hyderabad International Convention Centre (HICC), in Visakhapatnam, Vijayawada and Tirupati are on the anvil. The government’s tourism mission document, expected later this year, is expected to detail these initiatives. In the meantime, the AP government has received a final draft of tourism policy to regulate tourism investment."

And now, from South Report.com in an article titled "India's First Disneyland To Be Built in Vizag, Andhra Pradesh":

"Andhra Pradesh is buzzing in the Tourism Industry as the India’s first Disneyland is taking shape and is in proposal stage to be set up at Visakhapatnam (Vizag), the Financial and Tourism capital of Andhra Pradesh state.

Disneyland and Universal Studios are amongst the biggest tourism attractions around the world. They are both yet to set up their mega theme parks in India. Disney land is planning to enter India and investors choose Visakhapatnam, the beautiful beach city.

Disneyland would need almost 2000 Acres of land and govt is trying to figure out a land that best fits disney with a beach view making it one of the major tourism destinations of India.  Vizag was choose by Chief Minister Chandrababu Naidu as his dream financial and tourism capital, with Disney’s entry the tourism will grow multifold in already well established tourism cluster of Vizag-Araku. CM has reportedly ordered officials to offer best incentives to make sure that the Disneyland takes shape in Andhra Pradesh adding another Jewel.

Microsoft’s entry into Hyderabad facilitated by then united Andhra Pradesh chief minister Chandrababu naidu made all other leading players in IT industry to move to hyderabad with the policies and incentives offered by the govt. CM Chandrababu naidu is seen to follow the same method here to make Vizag a global tourism destination. Leading hotels around the world, many theme parks and water parks will set up their operations in Vizag once the Disney starts taking shape."

So, what can we think of all this, and will Disney build a theme park in India?  Here are the pro and the cons:

Pros:

There is no doubt that India and its 1,210,193,422 people - the second most populated country in the world - is an attractive market for Disney. Will Indians like the concept of a Disney theme park? Although India has plenty of myths, legends and gods and don't really need new ones the answer is "yes". Why? because the energetic plan of Indians  - i.e the way they think - can be playful and they will like to have fun the Disneyland way. 

Disneyland is also such an iconic figure of the Occidental world that having one on their own land is almost in itself a form of recognition of India's growing power, economically speaking. 

The location of Visakhapatnam in Andhra Pradesh might look too far from India's biggest city like New Delhi or Mumbai but not only it's the the largest city in the Indian state of Andhra Pradesh and the third largest city on the east coast of India (after Chennai and Kolkata) but it's also a port city on the southeast coast of Bay of Bengal, often called "the Jewel of the East Coast" and "the City of Destiny", and as you can see on the picture above there is miles of beaches which makes this part of India a potential tourist destination in a near future. 

As of 2011, the population of Visakhapatnam was recorded as 2,091,811, and the city not only is one of the major cities on the east coast of India connected by NH5, a major highway and a part of the Golden Quadrilateral system of Indian highways connecting Chennai and Kolkata but also has an airport connected by daily flights with Dubai, Singapore, Chennai, Delhi, Mumbai, Bangalore, Hyderabad, Kolkata, Kochi, Bhubaneshwar, Raipur and to Singapore. So the place in itself could be a much better location for Disney than huge cities like New Delhi or Mumbai, and probably more safe too. As if it happen a Disneyland India won't open before at least ten years from now it gives time to the place to grow up as a major tourist destination and be ready when Disney will arrive. 

Apparently Chief Minister Chandrababu Naidu is decided to make out of Visakhapatnam a major tourist destination, which for sure will help for the deal with Disney. That said, Disney will have the final word and may be they'll choose another location.

Click on the map to see where Visakhapatnam is located ( circled in white, on the East coast ) as well as others India major cities.

The location might seem a bit too far from the cities in India where live upper or middle class Indians, the ones who have money... but Visakhapatnam is not too far from great tech cities like Bangalore.

Although there is more than 1.2 Billion people living in India, not all of them are rich of course, and even most of them still very poor ( but wonderful people ). So, the "market" may not look developed enough ( financially speaking ) for Disney. This would be forgetting that a Disney theme park won't open there before ten years and India will be an even more powerful nation, with more potential customers for Disney.

Visakhapatnam is located on the Bay of Bengal, where potentially devastative typhoons happen regularly. But Hong Kong too has typhoons many time each year and it didn't stopped Disney to build a park there...

Is it a good idea to build a Disneyland in India? After all American and Indian traditional cultures are so far one from each other that it's almost like two different planets. But so was Japan too, and we know what happen...

In conclusion, although all this could be wishful thinking from Andhra Pradesh authorities i think we should keep an eye on what looks so far as only a rumor, as there might be something else more serious hidden behind it! And if it happen, just remember that you've read it here first, on Disney and more. As usual!

Disney strengthen its position in India

I've told you in previous articles that Disney was looking to India and one more proof of it is coming in a recent move from Disney as reported by Zachs website in an article called "Disney Eyes Bollywood Expansion":

In a bid to gain further traction in the Indian market, The Walt Disney Company (DIS) is set to acquire a controlling interest in UTV Software Communications Ltd. (UTV). One of the largest entertainment companies in the world is expected to enhance its presence in India through this deal. The strategic move on the company’s part will also enhance its position compared to its peers with respect to movie offerings. The company currently owns three leading children's television networks - Disney Channel, Disney XD and Hungama, which are performing well in the (India) market.

UTV is one of the leading producers and distributors of cinema and television programs in the rapidly growing Indian entertainment industry. UTV operates in five verticals, including Broadcasting, Motion Pictures, Interactive, Games Content and TV Content. Post acquisition, Disney would become India’s leading broadcasters catering to more than 100 million viewers weekly.

Through the acquisition, Disney will also gain access to "Bollywood" and other programs including gaming. The company will operate both UTV as well as Disney brands in India.

Although the financial terms of the deal remained undisclosed, UTV and Disney are progressing well on its integration process. Disney has started the process of delisting the shares of UTV from Indian bourses. In addition, the CEO of UTV, Mr. Screwvala will head the Indian operations as a managing director of Disney. Screwvala has a track record of successfully delivering content rich programs to the viewers.

Disney is expanding its global footprints in the developing markets such as India, Russia and China. The acquisition of UTV is a step forward in its expansion process with a strong boost in Indian operations. In Russia, Disney will begin broadcasting a free-to-air channel this year following its acquisition of 49% stake in the Russian media group UTH".

And from a N.Y Times blog: "UTV is one of India’s biggest producers of movies and television shows; it also owns six TV channels. Most importany, however, is UTV’s substantial mobile gaming division, Indiagames. With about a million new cellphones being activated a month in India, the potential for Disney to sell content that can be downloaded and played with is enormous.

Disney decided to buy market share in India rather than pursue organic growth in part because of the quick pace of consumer change in the country; by the time Disney got its footing, the market would have most surely moved on. The Indian middle class, for instance, is expected to grow to 500 million by 2025, up from roughly 50 million people today, according to UTV-provided estimates."

There is no doubt that Disney intend to strengthen its position in the huge India market and if one of your question is: "Will they build someday a Disney theme park in India? " the answer is: probably, all the question is: when?

Text: copyright zachs website, N.Y Times

Picture: copyright Disney

Jay Rasulo confirms Disney's plan to expand into India

I've just read on another web site - thanks to the Google News alert - that Disney Chief Financial Officer Jay Rasulo announced last Thursday the company's plan to expand into India. It reminded me instantly an article i've posted two years ago in which i was saying that the WDC was seriously "thinking" about an expansion in India.

What is not clear yet is if Disney is interested by India only to introduce the company through the usual steps, a Disney Channel, etc, or if Jay Rasulo was talking about creating a Disney theme park in India. My guess is that he was talking about that, but that's only my feeling... Even if that sounds like a good news for my readers from India i'm sorry to say that that will probably have to wait at least ten years before an India Disneyland opens somewhere in the country whether it will be in Bombay or Delhi - probably Bombay.

Anyway, my thoughts in this previous 2009 article are still relevant and here they are again:

"Is Disney planning to build theme parks in other countries than China? Will we see one day a Disney park in India? As i was saying in this article posted two years ago: "If the question is "Is the Walt Disney Company planning to build a theme park in India?", the answer is "no". But if the question was "Are they thinking about India for a future Disney theme park?", then the answer is "yes, definitely, they're thinking about it".

Now, don't get me wrong, it doesn't mean that New Delhi or Bombay will have a Magic Kingdom anytime soon. The WDC is just seriously "thinking" about it. Strictly on a "business" point of view, it's perfectly understandable. After all, more than one billion people are living in India and this great country is in full economic development. And considering that Disney don't have in mind to open a theme park in India before ten years, in the meantime India could be economically ready for a success of this future park.

But for me, the question is not "Are they going to build a MK in India or not" but more: "Is it really a good idea?". Let me tell you more about what i have in mind. When Disney decided some years ago to build HKDL they probably thought that the park would be an instant success. After all, Japanese are in love with Disneyland, so why not the Chinese? Then the park opened and the cultural shock arrived.

In France families may accept that children miss a day at school so they can go at DLP on week days to avoid the week-end crowds. But for Chinese it's almost unthinkable. One of the most important thing for Chinese people is the "security of the future". Which means that school success of their children is priority number one. Chinese and Japanese have totally different mental structures, that's where Disney did the mistake for HK. Now, why am I talking about all that? Simply because of the cultural differences. The major mistake that almost EVERY U.S big corporation is always doing is to ignore the cultural differences between the U.S and other countries. And we can't even blame them, because it's not their fault. The "mind" of a corporation is made in such way that they simply can't understand that. I suppose that they would probably tell you that they're not enough stupid to don't see the differences between the U.S and India, the "caste" problems, and so on... and that's right. They DO see that. What they DON'T see is another plan, more subtle. If we take, as i do today, the example of India what will be difficult for them to understand is the "spirit" of India.

As Indian philosopher Sri Aurobindo once said "India is the heart of the Earth". No other country in the world was - and still is - more spiritual than India. The inevitable - and perfectly welcome - economic development is changing this, but i think we must give some time to the country before landing with a pure occidental concept like Disneyland. In a country which have literally a pantheon of gods, Disneyland mythologies will be nothing. I agree that Indian people can be enough ludic to enjoy Disneyland but i'm not sure that DL mythologies have a lot of resonances in India's collective subconscious.

I have the greater respect for India civilisation, i think India's original vision of the world is stunning and i think that we probably have more to learn from them than they have from us. India have some of the greatest minds, artists and scientists in the world. I don't like too much the "caste" system, an heritage from medieval times, but i LOVE India. And i think that the WDC should understand the part of India which is "another planet" for us. And wait quite a while before building a Disney theme park over there. For the sake of India".

Picture: copyright Disney